The results of the first two years of the membership of Armenia in the EAEU are summed up

The results of the first two years of the membership of Armenia in the EAEU are summed up

7/6/2017

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Pros and cons the
Republic of Armenia received from its entry into the Eurasian Economic Union
(EAEU), its prospects and opportunities in the context of integration, as well
as the development of digital technologies in the country were discussed on
July 6 in Yerevan at the round table “Republic of Armenia: two years in the
Eurasian Economic Union. First results”

The round table
was attended by the Vice Prime Minister, the Minister of International Economic
Integration and Reforms of the Republic of Armenia, Vache Gabrielyan, the
Minister in charge of Integration and Macroeconomics of the EEC, Tatyana
Valovaya, the Minister in charge of Internal Markets, Information Support,
Information&Communication Technologies of the EEC, Karine Minasyan, Heads
of public authorities of Armenia, representatives of the embassies of the
Republic of Belarus, the Republic of Kazakhstan, the Russian Federation and the
Czech Republic, the scientific and business community.

Welcoming the
participants of the round table, Vache Gabrielyan said: "The past two years have shown that even in
the presence of external economic shocks and negative trends in the region,
exports of the Republic of Armenia have increased, prices for imported goods
fell, and the balance of payments deficit declined. However, any final
conclusion about the effects of the accession of Armenia to the EAEU would be
premature." According to the Armenian Government representative, basic
integration institutions are in the process of formation, and economic systems
of the member countries haven't still found the best way of cooperation. But at
the moment, a great potential of the integration association can be clearly
seen.

At the session
"The first results of the membership of the Republic of Armenia in EAEU”,
Tatyana Valovaya described the effects of the country's accession to the Union,
among which: leadership in terms of industrial development rates, increased
growth of gross domestic product and supplies of Armenian products to the
common market of the Union.

"Exports of the Republic of Armenia to the
EAEU Member States grew by 53% in 2016,” the EEC Minister said. “The country is ranked first by the
industrial production growth rate: in the past year, it was recorded at 6.7%.”

Growth of supplies
from Armenia to third countries in 2016 was 13%, while the share of high-tech
exports reached 12% of the total volume, with an average level of this
indicator for the Union 8.8%. Exports of Armenian goods to the internal market
of the EAEU in total exports increased from 15.9% to 22%.

Agricultural
production in Armenia increased by 6.5%, enabling the country to ramp up
supplies to the internal market of the Union in 2016. Compared with the figures
of 2014, exports increased by 6% and amounted to 260.7 million US dollars.
Supplies of fruits, alcoholic and non-alcoholic beverages grew the most.

Industrial
production growth was recorded at 6.7%, and in the first quarter of 2017 the
figure was 16.2% compared with the same period of the previous year.

Mutual trade
volume for the first quarter of 2017 increased by 38.4 percent to 102.5 million
US dollars, surpassing the level of 2014 by 49%, the level of 2015 by three
times.

The Republic of
Armenia has one of the dominant positions among the Member States in terms of
GDP growth rates. Despite the fact that from 2014 until 2016 the GDP of the
Republic was moderately restrained amid instability of the economic situation
in the world, and in particular in the Russian Federation, already in the first
quarter of 2017, as compared to the same period of the last year, the GDP
increased by 6.5%.

In the session
"Republic of Armenia and the EAEU: new opportunities and development
prospects", held at the round table, one of the main topics was the digital
transformation. Karine Minasyan, acting as a moderator of the session, noted
its importance. "Those states that
are not actively involved in the process of transformation in the coming years
may lose their competitive edge," the EEC Minister believes. “Armenia has made a huge step in the
development of information and communication technologies, the volume of the
industry from 2010 has grown by 4.3 times. It is the best indicator in the
country's economy. The number of IT companies operating in the global market
has grown by 2.4 times since 2010 and amounts to more than 400.”

During the
discussion it was noted that for Armenia the merge of the capabilities of the
real sector and the IT sector, which is included in processes of the global
digital transformation at the maximum extend, may become one of the main
recipes for maintaining competitiveness and improving performance.

According to
Karine Minasyan, Armenia has significantly advanced in the use of modern
technologies in agriculture. Since 2010, areas of greenhouses increased six
times, a large part of them has high-tech equipment, which ensures high
productivity.

Armenia has
largely advanced in traceability of products throughout the space of the Union.
Digital technologies make it possible to do the process of production and
supply of products and services transparent, as a result, interaction between
supervisory authorities and business is minimized.

The major
conclusions, recommendations and proposals made during the round table are
planned to be used in the preparation of the report “Republic of Armenia: two
years in the Eurasian Economic Union. First results.” It will be submitted at
the session of the Eurasian Intergovernmental Council at the end of the year.